Computation of current yield and YTM and bond price
Current Yield and yield to maturity. A bond has a $1,000 par value, 10 years to maturity, a 7 percent annual coupon, and sells for $985.
a. What is its current yield
b. What is its yield to maturity (YTM).
c. Assume that the yield to maturity remains constant for the next 3 years. What will the price be 3 years from today?